The UK’s Financial Conduct Authority has set out a framework for open finance, under which individuals and companies would be able to permit broader use of their financial information in order to seek improved terms on financial products.
The model would allow data to be shared securely with a wider group of financial services providers, with the aim of supporting access to products such as mortgages, investments, savings accounts and pensions.
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According to the regulator, wider data sharing could give providers a broader view of a customer’s financial position, which may support more tailored services, wider access, keener pricing and better protection against fraud.
FCA payments and digital finance executive director David Geale said: “Open finance has the potential to transform how people interact with financial services.
“By giving consumers and businesses more control over their own financial data, we can help them access credit, secure better deals and receive more customised support – while fuelling innovation, competition and supporting economic growth.”
The initial focus will include examining whether open finance can help small and medium-sized enterprises gain credit more easily and reduce the time taken for loan applications.
The FCA will also look at how the system could assist consumers in handling mortgages and improving access to home loans.
As part of the next stage, the FCA plans to work with industry participants, consumer representatives and other regulators during 2026 to identify practical use cases for open finance.
That work will take place through the FCA’s Smart Data Accelerator and PRISM (Prioritisation and Real-world Insights Selection Matrix) Taskforce.
The authority said it will work with HM Treasury on possible regulatory arrangements for open finance by the end of 2027.
It also said firms may be helped to roll out open finance products earlier where access to data already exists and the necessary permissions are in place.
In February, FCA decided to bring Buy Now Pay Later (BNPL) services under full consumer credit regulation, starting 15 July 2026.
The move follows a government directive to expand regulatory oversight of the BNPL sector.
